The ‘concerning’ investment mistake 4 in 5 Kiwis make at a critical moment in their lives

Saturday, 23 May 2026

New Zealanders face a surprisingly tight 2,250-week window of 'economically productive' years to raise families, pay off mortgages, and secure a comfortable retirement.

Recent data shows a worrying decline in investment frequency among Kiwis over 50.

Financial advisers warn that relying solely on downsizing the family home is becoming an unrealistic retirement strategy.

Analysis: The average human life is a staggeringly short 4000 weeks.

This fact is even more confronting when you factor in everything we have to do in that finite period.

We have to raise kids, pay off a mortgage and then also save up for a retirement in the knowledge that NZ Super probably won’t be enough to give us the kind of life we want.

Here’s the clincher: our economically productive years, during which we’re meant to achieve all that, are even tighter.

The first 1,000 weeks (20 years) of our lives will most likely be spent on education, during which we likely won’t save or earn very much.

Then, if we retire at a respectable age of 65, we lose an additional 750 weeks of earning potential.

This leaves a minuscule window of 2,250 weeks to do all of the above.

This doesn’t even begin to factor in the productive years we could lose to health issues, redundancy or other moments when we simply can’t work.

The years that we do have need to be squeezed pretty hard to generate enough juice to quench our thirst during those retirement years.

This is what makes recent research from Craigs Investment Partners so disconcerting.

The company’s representative survey of 1,000 New Zealanders aged 18 and older showed a steady decline in investment frequency among those aged 50 and older.

The research showed that only 19% of Kiwis in this cohort were investing frequently to build their nest egg.

Massey University Professor Claire Matthews calls this finding concerning because of what it could mean for these Kiwis as they head toward retirement.

“This was the finding that really surprised me,” says Matthews.

“It’s the complete opposite of what I would have expected. After the age of 50, people are likely to be in a better financial position, with a possibility that child-related responsibilities have substantially reduced.”

Matthews says one reason this might be the case is that more Kiwis are delaying the process of starting a family due to the changing dynamics in our society.

It’s become common for both partners to work full-time, and Kiwis are also buying their homes far later than in previous generations (with the average first-home buyer’s age now 37 in Auckland). This means they’re likely still paying their mortgage in their 50s, which could lead to them diverting funds from investments to pay down debt.

Matthews also questions whether some members of this group have given up because they feel they’ve left it too late.

“Perhaps they would prefer to spend their money now rather than keep it for retirement, because they don’t see that it is going to make much difference in retirement,” she says.

“But, I would argue that today is the second best time to start investing, with the best time being in the past.”

The old property tangle

The problem with focusing exclusively on paying off the mortgage and neglecting retirement investment is that our productive years haven’t pushed out quite as far as the time it takes to get on the property ladder or start a family. Yes, people are living longer, healthier lives and working longer, but it’s questionable how many Kiwis actually want to work deep into their 70s.

Craigs Investment Partners investment adviser Gretchen Williamson says that many Kiwis continue to view their property as a pension plan and tie the vast majority of their wealth to the family home.

“They believe that by the time they've paid off the mortgage that they're going to downsize and that will be what covers their retirement,' says Williamson.

But these expectations don’t always live up to the reality.

Property prices aren’t growing as quickly as they once did, and there’s no guarantee this generation will see the capital gains enjoyed by those of the past.

Williamson also warns that downsizing doesn’t always live up to expectations.

There might be a decent capital release if you sell your family home and move to regional New Zealand, but this isn’t often what retirees want.

More often than not, they want to stay in the same community and surround themselves with their old friends.

This means buying and selling in the same market. And if that means staying in a desirable Auckland suburb, you could be looking at north of $1 million for a two-bedroom apartment– not to mention the added costs that go into body corporate fees, utilities, insurance home repairs and entertainment.

Williamson notes that the economy is hard right now and she understands why some families might be pulling back on their investments in their 50s (particularly if they have a mortgage and teenage kids), but she says it’s important to think in the longer term and consider whether your strategy will deliver what you want in retirement.

None of this is easy. But with each passing week, we step ever-closer to the finish line of those 2250 productive weeks most of us will have.

So what’s your investment strategy? Are you paying down the mortgage as quickly as possible, investing or doing a combination of both? Let us know in the comments section below.